Texas Instruments signals expanding pain for chipmakers with somber forecast
Adds details from earnings call, analyst comment, updates share movement
By Chavi Mehta
Jan 24 (Reuters) -Texas Instruments TXN.O forecast first-quarter revenue and profit largely below Wall Street targets on Tuesday, as an economic downturn threatens to shackle demand from the chipmaker's so far resilient markets.
Smartphones and personal computing products were the first to feel the pinch of customers cutting back on discretionary spending as interest rates rose, but segments such as industrial have started to come under pressure.
On Tuesday, Texas said revenue in its industrial business fell 10% in the fourth quarter from the previous period, while it plunged 20% in its communications equipment and enterprise systems businesses.
Order cancellations rose during the fourth quarter, head of investor relations Dave Pahl told analysts in an earnings call.
The company said it expects "weaker than seasonal decline" in demand during the current quarter as customers preferred to reduce their inventory pile.
"TI's results show that even the more resilient analog markets are beginning to show weakness," Edward Jones analyst Logan Purk said.
The company's shares reversed course in choppy trading to be down marginally after the bell. The stock had lost 12% of its value in 2022.
Total revenue fell 3% to $4.67 billion in the quarter, compared with estimates of $4.62 billion.
The automotive market was the only exception to weak demand, Chief Executive Rich Templeton, who will step down in April, said on Tuesday.
However, Summit Insights Group analyst Kinngai Chan said orders in the automotive market have begun to moderate but haven't turned negative yet.
"We believe this order moderation is a result of the easing supply chain."
Texas Instruments expects revenue of $4.17 billion to $4.53 billion in the first quarter, the mid-point of which is lower than estimates of $4.41 billion, according to Refinitiv data.
It expects current-quarter earnings per share between $1.64 and $1.90, the mid-point of which also fell short of expectations of $1.87.
2022 was worst year for chip stocks since 2008 crisishttps://tmsnrt.rs/3wrEqKo
Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath and Sriraj Kalluvila
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
